Corporations Quick Check

Question

1 of 51 of 5 Items
Question
An advantage of a corporation is that (1 point)
Responses

the business is subject to little government intervention.
the business is subject to little government intervention.

owners pay fewer taxes than owners of other forms of business.
owners pay fewer taxes than owners of other forms of business.

owners have direct and immediate control over daily management of the business.
owners have direct and immediate control over daily management of the business.

owners have limited liability for debt.
owners have limited liability for debt.
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Answer 1

The correct answer is: owners have limited liability for debt.

This is a key advantage of corporations, as it means that the personal assets of the owners (shareholders) are protected from the corporation's debts and liabilities.